Business Strategies for Ryanair: Impact of Macro Environment, Internal Analysis, and Competitive Strategies

This report analyzes the impact of macro environment on Ryanair's business strategies, internal environment and capabilities using appropriate frameworks, and competitive strategies using Porter's Five Forces model and other theories. It also includes a SWOT analysis, stakeholder analysis, and VRIO framework.

Business Strategies

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................8
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management promotes total guidance through evolution plan and process executed to
attain desirable objectives and targets of the organisation and also effective usage of appropriate
resources in accordance to execute and plan. It management system is also known as the method
preparation and execution of desirable goals of the organisation just to give an edge over the
competitors. The following report is based on the firm Ryanair which is a well established Irish
ultra low cost carrier airline company having its headquarters in Dublin. Moreover, it was
launched in 1984. The following report will highlight the brief description about the strategic
management(Muratbekova‐Touron, Kabalina and Festing, 2018). It will also include internal as
well as external factorial analysis. In addition to this it will examine the competitive strategies
with the help of porter's generic strategies. Moreover, it will involve the strategic direction as
well as the scalable alone.
TASK
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
Every macro environment status use to be executed in all the nations of the world and it makes a
essential campaigns as well as strategies with that every kind of operational department as well
as the frameworks can be known and examined. It renders the crucial promotion in which the
reputation of the firm and needed techniques can be a support structure. It is very much essential
for all the firms as well as the business activities to generate more revenues and evolute those
types of the techniques or the strategies that can help them in sustainability of their long term
objectives and goals . In addition to this, it also assist in evaluating the needs and wants of the
organisation(Schuler, Tarique and Khilji, 2018). In context to Ryanair, management is utilising
various strategies in order to maintain the accomplishment of the tasks and objectives in a long
term manner by following their missions and objectives.
Mision – To supply all their guest or passengers a low cost fare campaigns as well as the
implementation of the efficient operations in which cost of the operations can be determined.
Objectives – To set up a particular company that can make low cost fare and also concentrate on
the betterment of their long term services and success.

Techniques utilised in strategic planning.
 Benchmarking – It is a common activity that is utilised to give all the essential
operations and the competitors in accordance to declare all the crucial deep components
and the capability of the firm.
 Business analysis – It is utilised to give all the major capabilities and the threats in the
firm and their operational departments.
Analytical way used in the macro environment:
PESTLE Analysis:
It is commonly gives all the techniques that need to be executed in all type of the
strategics management and their multifarious outside environment components. In case of the
company Ryanair its PESTLE analysis is mentioned below briefly.
 Political Factor – This is factor relates to the intervention of the government or the
political activities which affects the organisation as in respect to all the policies and laws
made by the government bodies(Karstedt, 2021). It includes all types of the norms and
policies which states about the working rules of the organisation. In context to the
Ryanair, company is basically have a major impact in their profitability because of
increasing tax rates that can reduce the total margins of the company as well as the sales.
 Economic Factor – The elements in the economic outside environment have a major
impact on the general long term goal of the company in the market segment. The
economic atmosphere of the organisation impacts the prices or cost of the services or
products which a company offer can affect the demand which can ultimately impacts the
supply. In relation to the Ryanair, the management concentrates on using the alternatives
airports to function their operations in accordance to save the external cost and charges
are linked to the main airport. In addition to it, the fluctuation in the exchange rates
together with the rise in the prices of the fuel can raise the expense of the working of the
organisation.
 Social Factor – This factor refers to the attitude and ever changing behaviour of the
consumers that are need to accomplish by the firms in accordance to manage their long
term success. In context to the Ryanair, their campaign of the “always getting better” has
assisted the firm to have the better bond with their clients as well as the

employees(Walton, Zhang and O'Kane, 2020). This is very essential for them as every
one knows that low social responsibilities can lead to decline in the consumer base.
 Technological Factor – This factor includes all types of the latest innovation in regards
of the technology that is being utilised by the organisation in order to make the firm more
successful as well as sustainable. In case of Ryanair, management have adapted various
types of the technological methods by which the company is giving their consumers an
online platform where they can buy tickets as well as can solve any queries regarding
their problems.
 Legal – This factor impact the overall methods and policies of the particular sector
because of the safe and healthy work environment. Management of the Ryanair, has also
faced various legal complications one of them was at the time of the acquisition of the
company of Air Lingus because of the rejection from the UKOFT and EC(Park and et.
al., 2018).
 Environmental Factor – It refers to the ecological aspects of the organisation. In case of
Ryanair, management is utilising the various methods of carbon footprints that
encourages the perks in having better consumer base as well as in the smooth operations
of the company.
Ryanair Strategics:
Ryanair is one of the largest carrier airline in the Europe which is known as the numerous
of the passengers that are the largest in the world for internation passengers. It was
SWOT analysis of Ryanair:
SWOT analysis is a common framework that helps the firm to efficaciously examine its
overall strengths and opportunities as well as it eliminates the threats and the weaknesses which
can affect the organisational functions(Krahlheer and Koch, 2020). In case of the firm Ryanair,
the evaluation of internal analysis which can assist the firm to show the things in the company is
lacking and the elements that can be used by the rivals, if it is not managed earlier.
Strength:
 The firm is having a major strength of its well recognised brand reputation because of
their low fare cost.

 The system of the company is also wide in nature that gives them an edge over its
competitors in the marketplace together with higher expense margins and economic
expansion.
 The firm has the one of the most effectual low cost method in the competitive
marketplace that gives them better margins and also the loyal consumer base which is
beneficial for long term growth as well as success of the company.
 Moreover, model of their aircraft assist them to lower their cost of operations like
maintenance, fuel and cost of the training(Mior, 2018).
Weakness:
 One of the main weakness of the company is that company is majorly focused on only
lower cost instead of any other services.
 They are mainly utilising the other secondary airports as they are very far away from the
main city area.
 As mentioned above company is not focusing on their other services. So, this can be a
threat to the over all brand image of the company for their long term growth as well as
success.
 Company's operational environment is not suitable for their workers that leads to the
decrease in the loyalty of the employees towards their organisation.
Opportunities:
 Company can improve their organisational functions by efficacious usage of the social
media which can help them in gaining more consumer base as well as it can enhance the
brand image(Downs and et. al., 2020).
 Firm can adapt various latest technologies in accordance to accomplish latest models of
their aircraft with following the low carbon emission and expense of operating it.
 Internet can also provide firm with various opportunities as like tempting their consumers
on their websites and enhancing their total marketing promotion which gives an outcome
of increment in the revenues earned by the firm.
Threats:
 One of the major threat to the company is the risk of terror and hijacking which can be
harmful for their over all brand image as well as the decline in the loyal consumer base.

 There are various legal challenges which are the threat to the organisation like various
policies and regulation of both government and local together with the issues regarding
violation of laws made by the Irish government and European commission(Chhonker and
et. al., 2018).
 Additionally, the firm is having a regular risk of the various outside environmental
fluctuations like the rescission, fluctuation in the exchange as well as the foreign rates.
 Rising rates of the fuel price can also impact the profitability of the organisation in the
long term because company then needs to increase the prices of their tickets which can
lead to lose of customers.
Stakeholder Analysis:
There are several number of people as well as the company that impacts the operations
such as it can be restricted the operations or might assist it. Stakeholders of the firm are divided n
to the base of their interest as well as the power in the organisation. This analysis can be known
with the power – interest grid of the stakeholders that shows the positions assign to them and
decisions which need to take with them. In case of the Ryanair, all the methods that are executed
in the company of the stakeholder analysis is mentioned below:
 High power – High interest – it is basically refers to all the higher level management
that have high authority in the decision making as well as in the other operations of the
firm and also have the the higher interest in the working of the company. In case of the
Ryanair, their board of directors are to belong to this category(Brenes, Ciravegna and
Pichardo, 2019).
 High power – Low interest – In this category of stakeholder analysis, it includes those
stakeholders of the firm who are the major investors as they bring capital in the firm
which helps in the long term growth of it. In relation to the Ryanair, their investors as
well as the employees can belong to this category because they have high authority in the
operations of the organisation but have low interest.
 Low power – High interest – In this category it refers to the stakeholders who are
having low power but have higher interest in the business activities of the organisation. In
context to Ryanair, their consumers can belong to this category as they have no power but
also have higher interest in the business services and it is also important to let the

consumers know about the all the necessary details regarding the operations of the
company.
 Low power – low interest – In it people related to the organisation have no interest in
the business practices as well as those stakeholders are not assigned any authority. In case
of Ryanair, airport authorities come under this category which shows no interest in their
internal activities as well as have no power in decision making(Howse, S. and et. al.,
2018).
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
Resource-based view:
It is a framework by which the firm can create various type of strategies by which they can
manage the success and the promotion of the sustainable competitive edge In it. It is commonly
of two types which are tangible and intangible. Ryanair expeditiously utilise their all resources
and services in a appropriate way .
Mckinsey's 7S model:
In context to the Ryanair its mckinsey’s 7s are described below:
 Structure- Management of the Ryanair is utilising the hierarchical structure in which
their flow of work delegation is from top to bottom.
 Strategy – Ryanair strategy is to concentrate on making and executing such flights that
can assist in managing the low cost fare.
 Skills- It concentrates on facilitating their employees with various effective training in
order to execute their work with confidence which can assist them in smooth operation
execution.
 System- Management of the Ryanair can apply this advancement system in their
operations by utilising it in sufficient way which assist in appropriate working of the
firm.
 Staff- There are more then 18000 workers operating in the firm Ryanair to make the
company operates in an efficacious way.
 Style- Company Ryanair is following transformational leadership style in which staff is
managed by only one manager.

 Shared value- Ryanair is focusing on generating the low cost value in order to save
money and to make the worth of the amount which is being invested in the company.
VRIO Framework:
This framework have four importance components that are described below:
 Valuable- Financial resource of the Ryanair is considered valuable resource for them and
also allows them to operate their tasks in an efficient and effective way in the market
area.
 Rare- This regards every type of unique and the crucial merchandise that are being
choose by them as the rare. Human resource is rare resource for them as it is very
difficult for the competitors to get such skilled and experienced employees.
 Imitation- Brand image of the Ryanair is very tough to imitate or copy by the
competitors as in order to copy it. It requires a lot of capital for others to set up such
large and reputed firm.
 Organisation- It is the last factor of this framework as resources are organised in an
effectual way which can give them a value of it. In context to Ryanair, the brand image of
the firm is known to be as their organised resource which helps firm in attaining an edge
over its competitors(Lakshmi and Ganguly, 2019).
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.
Porter's five forces:
Porters five is the framework of analysing the competition in the industry and to see how the
other organisations are working at different level of profits.
 Competitive Rivalry- It refers to the competition in the marketplace. Ryanair have a
high level of force as they incline towards functioning low cost services with various of
the services providing in the market.
 Threat of substitute- It determines that customer is moving to other substitute or
product. this depends on the various factors like product differentiation, competitors
profit and so on. Ryanair, this threat is low for them as they usually concentrates on
giving the low fare technique in which it is very much convenient for the consumers.
 Power of supplier- This force identifies the numbers of supplier in the market. For the
company Ryanair this power is usually high as after the study company have only two

areas as they use to take all their raw materials from the boing so they can negotiate the
price in accordance to them only.
 Power of the buyers- This forces determine that consumer can move to other seller
because they have multiple choices of airline companies, they don't want to compromise
with the cost. Ryanair bargaining power of their buyers is low as they are already
working on their low cost strategy.
 Threats of new entrants- This force is based on entry of new business in the market. It
is the convenience that is been known in the market area to adapt all the similar business.
New entrants cannot be a threat to the majorly costly and they need lots of official work
so this can be a reason for low new entrant.
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.
Porter's Generic:
Porter's generic model determines what kind of approach is organisation following and how does
it make company profitable. Four strategies of it described below:
 Differentiation- This kind of strategy believes more in the uniqueness and quality of the
product . The price of the product might be higher than the competitors but the quality of
the product is brilliant. Management of the Ryanair, can utilise this method as by
focusing on the innovative as well as the unique formulation in order to gain more
consumer base(Sayed and Lento, 2018).
 Focus- It gives the two base elements in the firm utilise to focus on the essential market
places and variables such as cost focus that render the particular segment and expense of
the firm and other one is attempting differentiation that creates all the challenges to be
focused in it. By approaching the unique and innovative way of services of the Ryanair,
company can implement several cost effective techniques.
 Cost leadership- This kind of strategy focuses more on minimizing the cost of the
product. The main aim of this strategy is to make the product available to the customer at
the cheapest price possible so more and more price centric customers will be attracted
towards it. Ryanair is working on their low cost strategy in order to enhance their
customer base.
Bowman's strategic clock:

It gives the competitor edge of the service or merchandise in the marketplace. In case of Ryanair,
few essential techniques that are mentioned below:
 Low price – This method of low pricing is majorly adapted by the organisation in order
to assist in altering all the required changes. Management of the Ryanair can attempt to
promote for the consumers at the low pricing so as to increase more revenue.
 Low value added and low price- It boost the pricing to be kept down in order to take the
perks out of it. Company Ryanair can prefer the lower cost of their products.
 Differentiation- It include enhancing the appropriate services for the merchandise and
also to sort the constitued places and the objectives. In case of Ryanair, firm can enhance
their reputation of their services to modify in order to increase loyalty.
 Hybrid- It includes the broad company merchandise that are being made efficacious with
all the framework and the set that are being prefer. Company Ryanair can execute several
strategy in order to make the better modification and also by utilising more worthy
offering in very less cost.
 Focused Differentiation- It is usually the need of making of every offered services or the
goods to be allotted in a appropriate way in order to optimise the utilisation and to
function few new offerings. Ryanair is using their low cost strategy in order to
concentrate on creating various techniques in which modified services at a high cost can
be implemented.
 Monopoly pricing- Management can utilise this strategy in order to make their product
bit of unique as well different. Company can use this method as it gives no competition to
them.
 Risky high margins- It prevails the altering of the higher cost for the offerings that are
being supplied earlier. A Ryanair can focus on applying all latest techniques by which
company can modify their strategy.
 Loss of market shares- Customers can implement this strategy in order to make the
products at the reasonable cost. Company, Ryanair can prefer the low price technique in
their services in order to increase their existing consumers base as well as gaining new
customers also.
Ansoff Matrix:

This technique assist the firm in several strategies in accordance to that the firm can instruct their
operations and can also create various new expansion by obeying the orientation provided in it.
In case of Ryanair they are described below briefly:
 Market penetration – It is the most common method that assist in making the firm to
expand their business operations with utilising various types of the techniques in the
existing marketplace as well as with existing products or services. In case of the company
Ryanair, management can improve their consumers services which helps them in their
growth as well as development.
 Market Development – This strategy refers to the make the current products of the firm
to be sell in the new market places. In case of the Ryanair management can utilise all
their strategies in order to make their company to be available to the new market segment
in accordance to tempt new consumers and it can help them in accomplishing new market
audience and also helps them in their long term expansion plan.
 Product development – This method states that organisation is modifying or creating
new products or services and launch them into their existing market area in order to
provide their existing consumers with several new services or products. In context to
Ryanair, firm can provide their consumers with various attracting and services that can
make the operations to be convenient for the consumers as well as the management which
facilitates in the long term growth in the existing market area(Leithon, Lim and Sun,
2018).
 Diversification – This refers to the tapping in to the new market area with introducing
whole new product or service segments. It is the riskiest form of this matrix. In relation to
Ryanair, firm can concentrate on creating and providing their consumers with whole new
services in totally different or untapped market area.
Ryanair can try to adopt market development framework as they can tap into the new market
area with their current services in order to increased the new consumer base and enhanced profits
Summary Ryanair is a major airline comapny of the low
cost having its headquarters in the Dublin.
Vision Firm aims at making itself as one of the major
low cost airline firm in the entire Europe by

optimistic consistent betterment and evoluting
low cost services.
Mission The mission of the firm is to enhance their
consumer base by providing low tickets price.
Objectives  To widen the domain of function of the
firm.
 To get a directional amid the close
airlines.
 To increase more income.
Tactics  Product- Ryanair is settiing up to
introduce a new tour package of the
customer linked to business trips.
 Price- Firm will be costing higher
prices for their luxury segment of
business class.
 Place- The tour package is available on
the major routes of UK.
 Promotion- Marketing with the help of
internet and social media can be very
beneficial in order to reach the new
audience.
Evaluation Benchmarking is the method which can be
utilised by the firm in order to see the
outcomes brought up with the latest business
tour package which can give them an edge over
its competitors.

CONCLUSION
From the above report it is concluded that business strategy is helpful in understanding all the
internal as well as external factors of the company. In which SWOT analysis assist in
understanding the strength and threats internally and externally of the firm as well as also helps
in understanding the opportunities and weaknesses of the firm.
PESTLE analysis discuss about the positive and the negative impact on all the factors made in it.
As Ryanair is a low pricing company it can maintain the cost strategy to make themselves better
from all the competence in the market and also by evaluating different market shares ion the
company.
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